Baosteel, Nippon and Arcelor to establish jv in Shanghai

Baosteel, Nippon and Arcelor to establish jv in Shanghai

Steel giants Baosteel, Nippon Steel Corporation (NSC) and Arcelor have recently reached an agreement to establish a joint venture auto steel sheet company in Shanghai. The joint venture company involves a total investment of Yuan 6.5 billion ($783 million) and Yuan 3 billion ($361 million) of registered capital. The shares of Baosteel, NSC and Arcelor in the capital are 50%, 38% and 12% respectively. The company will produce 900'000 tons of cold rolled sheets and 800'000 tons of galvanized sheets for automobiles. The production is scheduled to start in June 2005.